Out of sync The trillion-dollar climate puzzle that's become a diplomatic nightmare

 

The article highlights the ongoing discussions around climate finance at COP29 in Baku, where the focus is on how much money rich countries should provide to help developing countries combat climate change. The original goal of $100 billion per year, promised back in 2009, has been widely criticized for being insufficient. Many developing nations are now calling for at least a trillion dollars annually to meet their needs, arguing that the historical responsibility for climate change lies with the wealthier nations, which have contributed the most to global emissions.

Despite this call for more substantial financial contributions, the negotiations are complicated by disagreements on the exact amount, who should contribute, and the specific timeline for delivery. The article points out that rich countries have often failed to meet their climate finance targets, and when they do contribute, it’s often through loans rather than grants, which are harder for developing countries to repay.

The financial needs of developing countries are vast, with estimates ranging from $500 billion to $5.9 trillion per year by 2030, depending on the scope of the needs and the accounting methods used. These needs include not just mitigation (reducing emissions) but adaptation to climate impacts, such as damage from extreme weather events. The article emphasizes that these costs are expected to grow rapidly due to increasing climate impacts.

While discussions continue, proposals have emerged suggesting taxing fossil fuel profits or instituting a "climate damages tax" on extraction, which could potentially raise funds for climate finance. However, such measures are seen as temporary solutions, and the scale of financial support required remains a contentious issue at the global level.